W. Va. Code R. § 110-28-7

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-28-7 - Quarterly distribution of collections; Periodic cost recovery fee; Fund administration

7.1. The Tax Commissioner shall distribute allocable revenues collected during each calendar quarter to each revenue generating municipality no later than the 15th business day of the month following the close of the quarter in which the tax was remitted to the Tax Department. Timely distribution has occurred when the Tax Department issues the request for transfer to the State Treasurer. The Tax Commissioner has fulfilled the responsibility for distribution of allocable revenues upon issuance of the request for transfer to the State Treasurer.

7.1.1. Each municipality shall record and account for distributions of the taxes administered under this rule on the books and records of the municipality as a single discrete payment. No expenditure, cost or offset shall be recorded or accounted for by the municipality for refunds, the periodic cost recovery fee, adjustments for filing errors, adjustments for payment errors, and similar adjustments. The municipality effectuates the municipal sales and use tax only pursuant to statutory authorization. Under that statute, the Tax Commissioner is designated as the sole administrator of the taxes collected and distributed under this rule. Therefore, all costs, charges, refunds, offsets, adjustments and fees are considered to be administered at the Tax Department level of the process.

7.2. A fee, to be retained by the Tax Commissioner, is authorized by statute for collecting, enforcing and administering the municipal sales and use tax. That fee is equal to the periodic cost recovery fee calculated under the provisions of this rule and W. Va. Code §§ 11-10-11c and 11-10-27. Recoverable cost accrual commences on July 1, 2013. The fee shall be retained by the Tax Commissioner from proceeds of municipal sales and use tax collected for program municipalities. The Tax Commissioner shall deposit all the proceeds from municipal sales and use taxes collected for program municipalities, minus any fee authorized by W. Va. Code §§ 11-10-11c and 11-10-27 for collecting, enforcing and administering taxes, in the appropriate subaccount for the municipality. However, the periodic cost recovery fee discussed in this rule does not apply to the collection by the Tax Commissioner of the District Excise Tax provided for in W.Va. Code § 7-22-1, et seq., and W.Va. Code § 8-38-1, et seq., because the fee for collection of the District Excise tax is provided for in W. Va. Code § 11-10-11b rather than in W.Va. Code § 11-10-11c.

7.3. On and prior to June 30, 2022, the Treasurer shall deposit the following items in the "Local Sales Tax and Excise Tax Administration Fund" created by W. Va. Code § 11-10-11c:

7.3.1. The periodic cost recovery fee, calculated pursuant to this rule;

7.3.2. Any amounts received on and after July 1, 2013, from fees retained by the Tax Commissioner pursuant to the authorization provided in W.Va. Code § 8-13C-6;

7.3.3. Amounts deducted and retained by the Tax Commissioner under W.Va. Code § 11-10-11b;

7.3.4. Any future amounts appropriated by the Legislature or transferred by any public agency as contemplated or permitted by applicable federal or state law;

7.3.5. All moneys in the Tax Department "Municipal Sales and Use Tax Operations Fund" established under W.Va. Code § 8-13C-6 that were transferred to the "Local Sales Tax and Excise Tax Administration Fund" on July 1, 2013 as provided in W.Va. Code § 11-10-11c;

7.3.6. All moneys in the "Special District Excise Tax Administration Fund" established under W.Va. Code § 11-10-11b that were transferred to the "Local Sales Tax and Excise Tax Administration Fund" on July 1, 2013 as provided in W.Va. Code § 11-10-11c; and

7.3.7. Any accrued interest or other return on the moneys in the fund.

7.4. On and after July 1, 2022, the Treasurer shall deposit any moneys that would have been deposited into the Local Sales Tax and Excise Tax Administration fund under section 7.3 of this Rule into the "Tax Administration Services Fund," which shall be a revolving fund for the use of the Tax Division of the Department of Revenue for general tax administration in accordance with the provisions of W. Va. Code § 11-10-27. Moneys remaining in such fund on the last day of the fiscal year shall carry over and remain in the fund in the next succeeding fiscal year for use by the Tax Division of the Department of Revenue.

W. Va. Code R. § 110-28-7